Which stocks should investors consider for the fourth quarter of 2026? Money.it spoke with Kyle Reidhead, Co-Owner and Head of Research at Milk Road, at a time when investors are trying to determine which assets and companies are most likely to benefit from the technological transformation driven by artificial intelligence (AI).

More broadly, which stocks offer the most attractive opportunities in the final three months of 2026? Reidhead shared his view, arguing that the time has also come to reassess some of the choices made over the course of the year.

The expert interviewed by Money.it explains why the market got it wrong

Kyle Reidhead has a very clear thesis on where to invest in the final quarter of 2026, starting with what he believes was a mistake many investors made: “The market spent this year sorting companies into “AI winner” and “AI victim” - and got the sorting wrong”.

According to Reidhead, that distinction was applied too broadly, ultimately hurting companies that are actually positioned to benefit from AI.

That mispricing, however, is precisely where the expert sees investment opportunities.

According to Reidhead, among the financial assets offering some of the most compelling opportunities in Q4 2026 are “equities tied to AI infrastructure - specifically the parts of it the market wrongly sold off”.

He observed that “earlier this year the market decided AI agents meant fewer software seats, so every software company was a casualty” and “that was too broad”. While “some software has no future in an agentic world”, he noted that “some of it is the infrastructure agents actually run on”, adding that “both were sold together”.

AI stocks to watch in Q4: Salesforce and ServiceNow

Kyle Reidhead then summed up his view while also highlighting the stocks he favors, after first making the following point:

“Agents need two things. They need a source of truth to check reality against, which is the CRM. And they need a harness to be built and deployed inside, which is what companies like ServiceNow and Palantir provide. Those businesses are accelerating because of AI, not in spite of it. I bought Salesforce and ServiceNow near the bottom of that sell-off in June and I still hold both”.

The other investment theme to prioritize is “power”. Reidhead added that “power, not chips, is the binding constraint on AI in the United States”, noting that “data centre demand is not slowing”.

He argued that “the grid moves too slowly, and the country is too far behind on nuclear for new capacity to arrive in time”. As a result, “that leaves behind-the-meter generation as the only solution that can be delivered on the timeline the demand requires”.

Three sectors to watch and more stock picks. The Nvidia call

Against this backdrop, the Head of Research at Milk Road identified other stocks and sectors that he believes are worth watching in the fourth quarter of 2026.

He highlighted “three groups for Q4”:

  • “First, the mispriced software names - Salesforce and ServiceNow. The catalyst is earnings. Every quarter that shows agent adoption expanding these businesses rather than shrinking them takes another piece out of the disruption thesis”.
  • “Second, power. Bloom Energy is down around 45 per cent from its highs immediately after one of the strongest earnings reports a company can produce. The catalyst there is not demand, which is obvious. It is execution - whether they can scale production. That is the entire question on that stock, and it gets answered over the next few quarters”.
  • “Third, compute. Nvidia is generating roughly a billion dollars a day in revenue while the market is still arguing about the structure of its investments. The catalyst people underrate is the Hugging Face acquisition. Hugging Face is the front door for anyone adopting open-source models - it routes them to the model, and to the GPUs they train and run it on. Nvidia now owns that routing”.

Stocks to watch in Q4: Reidhead sees Galaxy as the biggest opportunity

But the biggest opportunity that investors may be overlooking heading into the fourth quarter has another name: “Galaxy. It is the clearest mispricing I can find in any market right now”, Reidhead said.

Galaxy, he noted, is “valued at roughly 8 to 9 billion dollars” and “their data centre contract with CoreWeave alone runs 15 years at approximately a billion dollars a year”.

“Put any reasonable multiple on that contract and you arrive at the current valuation of the entire company”, he said. “Which means everything else is free”.

Not only that: “Beyond the 800 megawatts leased to CoreWeave, they have 5.7 gigawatts in their pipeline, valued at nothing. They have a crypto custody and brokerage business, one of the largest in the industry, valued at nothing. They hold close to 2 billion dollars of digital assets on the balance sheet, valued at almost nothing”.

All of this, for a reason that Reidhead considers “straightforward”:

The market’s model assumed the crypto business would fund the AI data centre buildout. In a crypto bear market, that model says the crypto business is dead - so Galaxy has to raise heavy debt or dilute shareholders to fund the AI side, and fund an unprofitable crypto business as well.

Now, however, Reidhead believes that “all that was needed was a change in the crypto tape, and we have just had one”.

As a result, “Galaxy should be considerably more profitable going into next quarter”, which “funds the buildout, which means far less debt and far less dilution than the market has priced”.

Reidhead believes that “I think fair value is 50 to 60 dollars today, and higher from there over the coming months”.

For the expert, Galaxy is therefore “the best risk-reward I see anywhere”.

For Kyle Reidhead, the recovery in Bitcoin and the broader crypto market in the third quarter has therefore reopened one of the key variables underpinning the Galaxy thesis: the ability of its digital asset business to help finance its expansion into AI data centers.

*Disclosure: Kyle holds positions in Salesforce, ServiceNow, Bloom Energy, Galaxy and Nvidia. The above is commentary, not investment advice.